Quote from @Greg M.:
June 3rd is this week. My guess is that they have already secured the other unit with a deposit, so they are stuck. They're playing you to see what they can get. Give them nothing.
I'd tell them that I'm revoking my cash for keys offer and they can continue to live there until the end of the lease. Worst case is it is ~2 months. Any late rent they get hit with the listed late fee. Eviction is filed for non-payment of rent the first day possible. However, if you confirm in writing by the end of today that you will be vacating the unit by June 3rd, I'll allow the breaking of the lease with no penalty.
Take every cent owed for rent including the June partial month out of the security deposit.
FYI, for an ESA you need to make a reasonable accommodation. Reasonable being the key word. Allowing a dog in a shared living space with another tenant being allergic is probably not reasonable. You likely could have denied it.
Thanks for the feedback. I definitely agree about them playing us to see what they can get. We already explained that there would be no more negotiating. That they need to either take our offer today or come up with full rent next month. It's just nerve-wracking thinking about possibly having to spend much more to evict if they decide to not pay and will not leave. Plus the potential fro them to cause damage to the property.
We found out that same information about the ESA from our attorney. We would of been able to deny it due to another tenant being allergic if she had not decided to leave. I honestly think she left because it was such a toxic environment. We found out after the fact that they were trying to charge her $200 more for rent than we had agreed to. When we confronted them on this they didn't seem to think there was anything wrong with this. They said it was for her to be able to use their stuff in the kitchen and living room.
I'm honestly just ready to be done with these people as they are so unpredictable and dishonest.